Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The income statement and balance sheet for AVILA, Inc. are provided below. (Note that the reported figures in the statements are expressed in thousands of

image text in transcribed
image text in transcribed
image text in transcribed
The income statement and balance sheet for AVILA, Inc. are provided below. (Note that the reported figures in the statements are expressed in thousands of dollars.) AVILA, INC. Balance Sheets as of December 31, 2018 and 2019 (in 000s) 2018 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 500 $1,000 Accounts payable $ 500 $ 800 Accounts receivable 500 440 Notes payable 900 700 Inventory 900 660 17 Total $ 1,900 $ 2,100 Total $ 1,400 $ 1,500 $ 400 $ 600 Long-term debt Owners' equity Common stock Accumulated retained earnings $ 600 $ 624 Fixed assets $ 500 $ 576 Net plant and equipment $ 1,000 $ 1,200 Total $ 1,100 $ 1,200 Total assets $2,900 $3,300 Total liabilities and owners' equity $2,900 $ 3,300 1,700 AVILA, INC. 2019 Income Statement (in 000s) Sales $ Cost of goods sold Depreciation 1,030 100 $ TA EBIT Interest paid 570 89 tA Taxable income Taxes 481 101 Net income $ 380 $ 304 Dividends Retained earnings 76 Requirement 1: Determine the cash flow from assets (including the operating cash flow, net capital spending, and change in net working capital), cash flow to creditors, and cash flow to stockholders for AVILA, Inc. for the year 2019. (Express your answers in thousands of dollars. Round your answer to the nearest whole dollar amount (e.g., 32). Negative amounts should be indicated by a minus sign.) Operating Cash Flow Net Capital Spending Change in NWC Cash Flow From Assets Cash Flow to Creditors Cash Flow to Stockholders A A A A Requirement 2: Calculate the internal growth rate and the sustainable growth rate for AVILA, Inc. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) Internal Growth Rate Sustainable Growth Rate 1% 1%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economics Of Money Banking And Financial Markets

Authors: Frederic S. Mishkin

9th Edition

0321598903, 978-0321598905

More Books

Students also viewed these Finance questions

Question

manageremployee relationship deteriorating over time;

Answered: 1 week ago